What effect does an insolvency process have on ongoing litigation and arbitration proceedings?
What effect does an insolvency process have on ongoing litigation and arbitration proceedings?

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • What effect does an insolvency process have on ongoing litigation and arbitration proceedings?
  • Brexit impact—cross-border insolvency (Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146)
  • Bankruptcy proceedings
  • Unique considerations in company insolvency proceedings
  • Power of a High Court judge to transfer proceedings
  • The effects of an arbitration agreement on insolvency proceedings
  • A mandatory stay under AA 1996, s 9
  • Referring a matter to arbitration under IA 1986, s 349A
  • Arbitration agreements in the cross-border context
  • Insolvency proceedings in another EU member state
  • more

This Practice Note discusses:

  1. the effect of an insolvency process on pending court proceedings in which the debtor, bankrupt or insolvent company is a claimant or defendant

  2. the interaction between an insolvency process and an arbitration agreement that is binding on the debtor, bankrupt or insolvent company

  3. additional considerations in a cross-border context

This Practice Note explains the law as it relates to bankruptcy proceedings and then goes on to set out the unique features in the case of company winding up.

Brexit impact—cross-border insolvency (Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146)

This Practice Note is impacted by the decision of the UK on 23 June 2016 to leave the European Union.

For cross-border insolvency, the Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146 were introduced and made on 30 January 2019 to address the deficiencies arising as a result of the withdrawal of the UK from the EU, by amending legislation, including EU-derived domestic legislation and directly effective EU legislation/rights that UK plans to retain in domestic law after exit. Key examples include:

  1. prospective amendments to the Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (the Recast Regulation on Insolvency), in anticipation of it being retained in domestic law after exit day

  2. associated and consequential amendments to related primary legislation,